Israel has always had cutting edge technology, and elite troops, and their presence in the game should reflect that. Maybe they should have limited numbers and unit types, to represent how outnumbered they are by their enemies (whom they have defeated handily time after time). If done right, they would be an awesome addition to the game.

Should Add Hezballah who defeated Isreal few years ago ? :) .. The problem that, Hezballah, will not have Jets or Tanks, etc.. it will be hard to restimulate the reality and have it defeat Israel again

If they made an Arab-Israeli Wars type Wargame, then yes of course (that would actually be kinda cool). Otherwise, no. They haven't done anything outside their land because they're too busy with that to get involved in Eastern Asia (Red Dragon) or Europe (EE and ALB)

To put it differently: What the hell does Israel have to do with a game pitting NATO against the Warsaw Pact? They're a part of neither!

To be fair, neither is Sweden. They made it into ALB because the game takes place in Scandinavia, which was in turn because Sweden makes a lot of cool stuff, compared to, say, Greece.

What units or equipment would Israel bring to the game (serious question)? And what would anybody else in that region bring?

But Denmark and Norway are. It's not unreasonable to think that Sweden would team up with NATO if Scandinavia got attacked. Israel on the other hand has nothing to do with NATO and has no neighbours involved with NATO.